Indus Motor Company declared an interim cash dividend of PKR 8.2/share

Indus Motors Company Limited (INDU) announced its financial result for 1QFY23 on 27th Oct’ 22 whereby the company posted a Profit After Tax (PAT) of PKR 1,297mn (EPS: PKR 16.5), down by 76% YoY. The cutback in profits is mainly driven by lower sales revenue (-43% YoY), resulting in negative gross margins. Alongside the result, the company declared an interim cash dividend of PKR 8.2/share.   

Result Highlights           

·        Net sales declined to PKR 37,249mn during 1QFY23, down by 43% YoY, due to lower volumetric sales (-52.4% YoY) amid higher car prices. In addition, the policy by SBP to curtail imports has resulted in lower production and sales.

·        Gross margins stood at -6.3% during 1QFY23, as compared to 10.8% in SPLY, due to weakness in topline, higher cost of raw material i.e. steel prices, along with significant rupee devaluation during 1QFY23. 

·        Other income depicted a substantial growth of 152% YoY during 1QFY23, mainly driven by higher interest income on increased advances from customers.

·        The company booked effective taxation at 29% in 1QFY23, similar to SPLY.

Courtesy – AHL Research

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